ECON Pizza Hut, Wendy's franchisee expected to file for bankruptcy (NPC International Inc.)

[Zagdid]

Pizza Hut, Wendy's franchisee expected to file for bankruptcy

The franchisee owns more than 1,200 Pizza Hut restaurants and 385 Wendy's

www.foxbusiness.com

Published 14 hours ago The Wall Street Journal

NPC International Inc., one of the largest restaurant franchisees in the U.S., is preparing to file for bankruptcy protection despite its brands reporting a bump in sales since the coronavirus pandemic, people familiar with the matter said.

The owner of more than 1,200 Pizza Hut restaurants and 385 Wendy's Co. stores could file for chapter 11 protection as soon as Tuesday, according to people familiar with the company's finances.

The franchisee missed interest payments on its nearly $800 million in loans on Jan. 31, prompting S&P Global Ratings and Moody's Investors Service to lower their views on the company's debt. NPC was in conversations with its lenders for a possible bankruptcy filing at that time, people familiar with the matter said.

An NPC spokeswoman wasn't immediately available for comment.

A number of franchised restaurant companies have declared bankruptcy since the pandemic hit, including the parent company to Chuck E. Cheese and the U.S. division of bakery chain Le Pain Quotidien. Franchised chains largely depend on customers coming into their dining rooms and have had to navigate a plunge in sales due to mandated restaurant closures.

Pizza Hut was struggling before the pandemic in the U.S., but has proven to be one of the winners from changing consumer behavior during the virus. Quarantined diners have turned to delivery and carryout to eat safely, with a number of pizza chains reporting growth.

In early May, Pizza Hut had its highest average sales in delivery and carryout in the U.S. in the past eight years, according to (Chinese) parent company Yum Brands Inc. Same-store sales were up in the low teens from the end of April through the end of May, the company said.

Kansas-based NPC, which opened its first Pizza Hut restaurant in 1962, employs more than 37,000 people.

But NPC's debt load has burdened the company's outlook for more than a year now. The company has spent on remodeling its units, something a growing number of chains have asked franchisees to do to modernize their brands.

 

[coloradohermit]

Our local Pizza Hut closed down for dine in and went delivery only early this year, before the virus was even heard of. Then it closed down completely. Damn shame.

 

[jward]

I find it hard to believe; I've been supporting the local pizza huts here for months now. I did not know NPC was KS based, either. A two-fer info offering- thanks.

 

[Dozdoats]

1,200 Pizza Hut restaurants and 385 Wendy's

That will leave a mark.

 

[1911user]

Chapter 11 - does that mean they are re-organizing finances and trying to stay open?

I seem to recall that chaper 7 means close it all and sell everything.

 

[TKO]

Pizza Hut used to be one good pizza. BUT, they have skimped and skimped over the years and I would say Red Baron is in the same league as Pizza Hut now. We had a Jets pizza the other day. It kind of tasted like Pizza Hut used to taste many years back. It was pretty good. Where I live, we have a few good local pizza places that just deliver a better pizza. ALSO, we aren't buying pizza much anymore. I went online to get two pizzas and it was nearly 50 dollars. Are you kidding me? So, this is where it is now. I'd rather eat a Little Caesers. Little Caesers has a decent pizza and it is only 6 bucks. FIFTY DOLLARS for two pizzas with two toppings. Can you believe it?

OH, and just like remote working now. People have started discovering to cook since they don't have to do commutes and such. I don't ever want to go back to the office.

 

[pauldingbabe]

Pizza Hut used to be one good pizza. BUT, they have skimped and skimped over the years and I would say Red Baron is in the same league as Pizza Hut now. We had a Jets pizza the other day. It kind of tasted like Pizza Hut used to taste many years back. It was pretty good. Where I live, we have a few good local pizza places that just deliver a better pizza. ALSO, we aren't buying pizza much anymore. I went online to get two pizzas and it was nearly 50 dollars. Are you kidding me? So, this is where it is now. I'd rather eat a Little Caesers. Little Caesers has a decent pizza and it is only 6 bucks. FIFTY DOLLARS for two pizzas with two toppings. Can you believe it?

OH, and just like remote working now. People have started discovering to cook since they don't have to do commutes and such. I don't ever want to go back to the office.

50$ for 2 pizza pies?

Who was talking about inflation? I could have sworn.....

Ok.....

 

[Dozdoats]

US Bankruptcies Busting Out to Match 2009 Peak Mean Trouble for Stock Market

Bloomberg reported this week that thirteen US companies (in the 50-million-plus size) filed for bankruptcy last week. That brought the total for the big boys and girls this year to 117, which match…

thegreatrecession.info

US Bankruptcies Busting Out to Match 2009 Peak Mean Trouble for Stock Market
Bloomberg reported this week that thirteen US companies (in the 50-million-plus size) filed for bankruptcy last week.
That brought the total for the big boys and girls this year to 117, which matches the record peak for the first half of a year set in 2009.

Already running consistently higher than last year before COVID-19, US bankruptcies just broke past their 2009 peak. | Source: Bloomberg

The slew of bankruptcies also set a record in the health-care sector which has seen thirteen bankruptcies this year, almost double the seven seen in the same period last year. Ironically a health crisis was not even good for the health of the health-care industry.
Some big names of companies that were already distressed have gone down — Hertz, J. Crew, J.C. Penney and Neiman Marcus.

The Numbers for Small Businesses Are Just as Bleak
The numbers above, however, scarcely compare to the number of bankruptcies for all US businesses from largest to smallest.
On a monthly basis, US bankruptcies jumped by almost half in May due to the pandemic, year on year.

U.S. courts recorded 722 businesses nationwide filing for chapter 11 protection last month, a yearly increase of 48%…. In May 2019, a total of 487 businesses filed for that type of bankruptcy….

On June 9, CBS News reported the next wave in the recession will be in bankruptcies due to the recent shutdown.

“This is a sign that already weak companies are succumbing to the lockdown recession,” Chris Kuehl, an economist with the National Association of Credit Management … said…. Businesses that were struggling before the pandemic “are starting to get in some real trouble.”

//////SNIP -- mucho more at US Bankruptcies Busting Out to Match 2009 Peak Mean Trouble for Stock Market

 

[TKO]

50$ for 2 pizza pies?

Who was talking about inflation? I could have sworn.....

Ok.....

I am finding similar kinds of price increases all over. Even at Culvers, they have made the burgers smaller.

2ea 16 inchers...

 

[Housecarl]

And so it begins.....

 

[Bubble Head]

I didn't know Yum Brands Inc. was a Chi-Com company. They have bought up a lot of our food sources.

 

[packyderms_wife]

Our local Pizza Hut closed down for dine in and went delivery only early this year, before the virus was even heard of. Then it closed down completely. Damn shame.

The dine in closed here about 12 years ago and the delivery only closed in May. Dominos is doing really good business from what I hear as is Pizza Ranch. As for Wendy's the only thing I can eat there is the salad because the buns have potato flour and potato starch in them, ditto with McDonalds, so we've been eating at Arby's (reuben on rye) or Hardee's when we're near one of those places and need to get a bite to eat. Otherwise take out here locally is Abelardos, their California Burrito is off the chain flavor wise and they will make it w/o the french fries in the burrito, and their pork tamales in red sauce OMG, drools heavily. Their refried beans and rice, meh. The nice thing about Abelardos is that they are a chain here in central Iowa, and seem to have bought all of the old Long John Silver's buildings for their stores... so I can get a great burrito just about anywhere in my local area when out and about running errands.

 

[packyderms_wife]

I didn't know Yum Brands Inc. was a Chi-Com company. They have bought up a lot of our food sources.

Control the food, control the people!

 

[1911user]

We have been getting pizza hut occasionally, but always their Deals. It is usually $35 total for 3 large pizzas and maybe breadsticks. I hope they don't close locally.

 

[rhughe13]

I didn't know Yum Brands Inc. was a Chi-Com company. They have bought up a lot of our food sources.

Yep I saw that too. Yum Yum eat up that Chinese Melamine in every bite.

 

[TKO]

Yep I saw that too. Yum Yum eat up that Chinese Melamine in every bite.

Hehehehe. Had to bring that one up. I will never forget a Chinese event where I worked. We had outsourced most of research. We were getting materials from China. In baby bottles and whatever junk package they could find. The order was that we could not freebase this stuff either. We didn't want to know what was in it. Some did, though. They must have dropped these materials on the floor because these samples had hair, nails, and other foreign matter in them. Ahh...China. Whatchagonnado?

 

[Dozdoats]

Ahh...China. Whatchagonnado?

Without.

 

[The Snack Artist]

This means they will be closing stores in the riot ravaged areas. They won't close stores that are cranking it. Blacks don't tip and they are dangerous to deliver to. We have pizza guys getting jumped in Chicongo all the time. Then they get fired adding insult to injury because they were A) Armed B) Fought back. Good thing the blm aholes straightened this out for their "communities"!! Lmao!